SHORT-TERM RENTALS: Nuisance or New-Age?

Balancing property owner rights with the right to peaceful enjoyment.

by Dan Wade, Esq., of Ianniello Anderson for Glens Falls TODAY

In our modern world, where the rules of economics are changing, and phrases like “side hustle” and “multiple streams of income” have crept into our lexicon, it’s no surprise that people have become creative in finding ways to acquire and accumulate currency. In some instances, one needs to look no further than their own surroundings and living space, from selling household items on eBay or feet pictures on OnlyFans, to giving strangers rides in their car with Uber or Lyft. We’ve become increasingly more comfortable with opening up our world to others…for a fee.

As this trend has continued to evolve, the home itself has become a commodity beyond the mere sale or long-term lease. Taking a page from hotels, resorts, and time shares, property owners have started converting their time away from home, unused in-law suites, and second homes into cash through short-term rentals with companies and apps like AirBnb and VRBO.

As the popularity of short-term rentals continues to grow, local towns and municipalities are struggling to balance the loss of revenue from hotel occupancy taxes with the rights of property owners to use their property as they see fit, but also balancing the rights of neighbors to peaceful enjoyment of their own property. Many towns and counties have moved to affect occupancy taxes on owners of short-term rentals to help offset revenue lost from hotels.

Warren County, for example, collects a 4% occupancy tax and requires short-term rental owners to register their property with the County. Property owners have pushed back stating they already pay enough in taxes and should be able to use their property however they want. The County states that his money is used to help promote tourism in the area. The Town of Queensbury has passed laws limiting the total number of days a property can be rented as a short-term rental to 120 days in a calendar year and requiring properties to be rented for a minimum of 5 days at a time during the summer tourism months. The Town of Fort Ann recently passed a law requiring property owners of short-term rentals to obtain a license from the town, requiring owners to establish written rules and regulations that the renter must sign, establishing quiet hours, limiting vehicles to 1.5 per bedroom (rounding to the nearest whole number), and limiting occupancy to 2 people per bedroom, plus 2.

With the trend for shorter vacations within millennial and younger generations on the rise, property owners are left scratching their heads failing to see how these laws promote tourism, while the Towns appear to be taking aim at limiting bachelor parties and other outlandish short-term parties in neighborhoods, which some view as a relatively small problem for such an overreaching set of regulations.

On the other side of the street are the neighbors, people who have lived in these neighborhoods for years and prior to the proliferation of short-term rentals, who view short-term rentals as a nuisance with rude and noisy renters who disturb the peace and don’t respect the beauty of the neighborhood. While everyone should have the right to peacefully enjoy their property within reason, will limiting the number of cars that can be parked in this age of Uber and Lyft, or forcing weekend tourists to book a 5 night stay even if they only intend to stay for 2 or 3 really have the intended effect of cutting down of noise and disruption in a peaceful neighborhood? Is this even a realistic concern, or are we curtailing the rights of property owners by making laws and regulations for a few bad apples?

The effects of these laws will need to be monitored and adjusted as necessary to see what, if any, chilling effects they have on tourism in the area, while maintaining the peace and tranquility of suburbia.

Daniel B. Wade has been practicing since 2004 in the areas of real estate, title, and LLC formations. To learn more, visit www.ialawny.com